Petronas plans to establish a hub in East Java by connecting production facilities and integrating logistics for three operations. Credit: Fadziel Nor/Shutterstock.com.

Malaysia’s state-owned oil and gas company Petronas has announced an “aggressive” expansion plan in Indonesia, Reuters has reported.

The company aims to establish a hub for its operations in East Java and explore investment opportunities in the country’s eastern regions.

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The move comes as Indonesia’s new government, led by President Prabowo Subianto, has committed to enhancing energy development to counteract the decline in output experienced by the former OPEC [Organization of the Petroleum Exporting Countries] member.

Petronas’ head of Indonesia Yuzaini Md Yuso has expressed the company’s optimism about recent regulatory changes that have simplified the development of energy projects.

Petronas currently operates four oil and gas blocks in Indonesia, three of them in the East Java region, and holds interests in several others.

The company plans to establish a hub for its three East Java operations by connecting their production facilities and integrating logistics.

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The East Java region will gain from a pipeline project set to be completed by December 2025, enhancing the attractiveness of the area for energy companies.

Petronas’ North Ketapang block is in the exploration phase, while the Hidayah field in the North Madura II block will begin to produce oil by 2027.

A new gas field is also being developed in the Ketapang block.

Further east, Petronas holds a 15% interest in the Masela gas project and has recently signed a production-sharing contract for the Bobara block offshore West Papua.

The Bobara block, estimated to contain 6.8 billion barrels of oil equivalent, marks Petronas’ first deep-water project in Indonesia as an operator. The company is considering bringing in a partner for the block.

Petronas is a joint venture partner in seven PSCs [production sharing contracts] situated onshore and offshore in regions including Sumatra, the Natuna Sea, East Java and East Indonesia.